Why Price is So Important – An Extreme Almost 17 Years to Break Even, Example!

We actually had planned on putting this in the Q1 2021 Newsletter, but you guys gave us so many great topics, this hit the cutting room floor.

This is an important enough reminder that we wanted to go ahead and send it to you!

By no means are we predicting this will occur again, and we picked a graphic example for sizzle. But living through this first hand, we know it can happen.

“Price is What you Pay, Value is What You Get!”

Warren Buffet

The following is a chart of an index that was full of dot coms … an index that ran to overzealous levels in late 1999 and early 2000.

Had an investor had the misfortune of buying at the very top, it would have taken them about 17 years to break even.

Again we’re not saying this will happen as post the 1999 .com mania many of the companies that were brought public went bankrupt in short order.

Once again, this is an extreme example of what can happen when prices move away from the true value, but worth remembering – we sure will!

Again not meant to frighten just too enlighten!

Have a Great “Reminder that Price Matters” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.



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